Tadano’s German Restructuring Won’t Affect North American Sales or Deliveries
Oct. 13, 2020 - Tadano Ltd.’s recently announced plan to restructure its German manufacturing operations will not affect sales or deliveries of equipment to customers in North America, according to a Tadano America executive.
Tadano’s corporate headquarters in Takamatsu, Japan, announced on Oct. 8 that the corporation had started the restructuring process, which is being done under a program of assistance offered by the German government.
Tadano has been integrating Demag Mobile Cranes operations into the Tadano organization ever since it bought the company in 2019. However, worldwide economic challenges, worsened by the COVID-19 pandemic, now make it necessary for Tadano to speed up the process, and to do it under the German government’s assistance program.
Tadano Ltd.’s news release noted that the restructuring of its Tadano Demag GmbH and Tadano Faun GmbH subsidiaries will help ensure the company’s long-term global competitiveness, and that it’s geared to offer customers even more added value in the future.
Development of the restructuring plan is scheduled to take three months. Until the restructuring plan is fully developed, the company will not know how long the actual restructuring will take.
Tadano Ltd.’s news release said that the reorganization process will enable both Tadano Demag and Tadano Faun to enhance their capacity to serve customers all around the world.
This will maximize Tadano Demag’s and Tadano Faun’s value for the Tadano Group as a whole, create stronger “One Tadano” group synergies, and make further contributions toward achieving the Tadano Group’s goal of becoming a global leader in the lifting equipment industry, said the release.
Tadano Demag and Tadano Faun, in close consultation with Tadano Ltd. and professional advisors, have filed for Protective Shield Proceedings, or “Schutzschirmverfahren,” pursuant to section 270b of the German Insolvency Directive.
Protective Shield Proceedings are a German judicial restructuring procedure that gives companies in distress a chance to stabilize their business while staying in control of their operations.
Companies Solvent, Likely to Succeed
Protective Shield Proceedings can only be applied to companies that are solvent and likely to restructure successfully – as is the case with both Tadano Demag and Tadano Faun.
During Protective Shield Proceedings, a company draws up a restructuring plan while benefitting from some temporary regulations that make reorganizing easier.
“This is a German government plan to help guide companies through the legal technicalities of restructuring before they get into financial trouble,” said the Tadano America spokesperson.
Both companies have been confronted with shrinking markets and mounting competitive pressure for some time.
In recent months, the COVID-19 pandemic has escalated the economic challenges considerably. Shortened work hours and other proactive measures have not been enough to overcome those challenges, according to the Tadano Ltd. news release.
Tadano Ltd. says it regards reorganization of Tadano Demag and Tadano Faun using Protective Shield Proceedings as an essential step toward better serving the needs of customers and continuing to advance the strategic goals of the Tadano Group.
Tadano Group acquired Demag Mobile Cranes in 2019, and integration initiatives worldwide continue to take place. Teams spanning various locations are working to realize synergies in order to raise global competitiveness in the mid and long terms. The Protective Shield Proceedings will ultimately accelerate and facilitate more effective integration, said Tadano.
All Orders Being Filled
Production at Tadano Demag and at Tadano Faun in Germany is ongoing, and all existing and new orders are being filled, the Tadano statement said.
All measures taken within the scope of the protective shield proceedings are geared toward offering greater added value to customers than ever before – both with market-leading, innovative products and in the service business.
To this end, Tadano said it intends to permanently optimize production processes at Tadano Demag and Tadano Faun, and to offer a far more complete range of lifting equipment solutions in the future.